Foreign Competition and U.S. Construction Industry

The purpose of this research is to examine foreign competition in the domestic construction market of the United States (US). Foreign competition in US domestic construction is very much a part of the international trade problem confronting the country (Hoffman, 1987, p. 11). The general issue of American competitiveness has a specific application, with respect to foreign participation in US domestic construction ("To Keep," 1986, p. 22). Another important factor with respect to foreign participation in US domestic construction is the acquisition of American construction firms by foreign construction firms (Setzer & Kemezis, 1987, p. 4). Lastly, governmental approach towards industrial policy has a significant effect on the ability of foreign firms to compete in US domestic construction ("Government," 1987, pp. 21-22).

FOREIGN PARTICIPATION IN US DOMESTIC CONSTRUCTION

AS A PART OF THE COUNTRY'S TRADE PROBLEM

The domestic construction market in the US is a tempting target for giant foreign construction firms ("New York," 1987, p. 174). The major foreign participation involves firms from Canada, Western Europe, and Japan ("Can," 1986, p. 27). Relatively recently, however, new foreign players, such as the Peoples Republic of China (PRC), have begun to eye US domestic construction ("China," 1987, p. 92). Construction, thus, for the first time, is beginning to figure prominently in the American international trade deficit, and the su

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id, and, as a consequence of this rigidity, it is held that (1) the performance of many of the subsystems within American firms have lost their relevance, because their contributions no longer enhance the mutual support required from all subsystems within a firm, and (2) American firms have become less competitive than their foreign counterparts (Johnson & Kaplan, 1987, pp. 1-18, 209-224). The correction of this state of affairs requires a recognition that an effective strategic planning process demands flexibility and mutually supportive subsystems, and an internal flexibility and level of support which permits adjustments to changes in a firm's external environment (Arrington, & Sawaga, 1984, pp. 148160; Lorange, & Vancil, 1985, pp. 128140). In terms of absolute output per hour, the US remains well ahead of most other countries. The socalled productivity gap is actually a gap in productivity gains. In most instances, foreign gains have been much greater than those of the American firms over the past decade. Were existing trends to continue unchanged, the Japanese and the West Europeans would equal the Americans in absolute output per hour in 20 or 30 years. A continued productivity gain gap could place the survivabil

Category: Business - F